By Martin Shwenk Leade
AgenciesRepresentative image
In a significant policy shift, the Ministry of Road Transport and Highways has decided to discontinue the use of the least cost (L1) bidding system for awarding consultancy contracts to prepare detailed project reports (DPRs), reported TOI.All highway implementing agencies under the ministry, including the National Highways Authority of India (NHAI), will now adopt a system where bidders are evaluated based on the highest technical score (T1), with a fixed consultancy fee, as per the TOI report. Under the new model, the consultancy fee will be predetermined by the agency, and companies will be selected based on their technical capabilities and track record. Officials said the shift aims to prioritise quality over cost and has shown positive results since its implementation by NHAI in September last year.鈥淭he new provision of rating of bidders and assigning 30% marks for technical score will further bring quality players to bid for projects,鈥 a senior official said.The change comes amid growing concerns about the deteriorating quality of project preparation due to consultants securing projects at extremely low and unsustainable rates. In some instances, firms quoted as little as Rs 70,000 to Rs 80,000 per kilometre for DPR preparation鈥攁n amount officials said is inadequate even for basic field surveys. By comparison, the revised fixed cost of Rs 4鈥5 lakh per km for a 4-6 lane highway constitutes roughly 0.5% of the total project cost, while in countries like Japan and Australia, DPR costs can account for up to 10% of project expenses.Live EventsOfficials acknowledged that poor-quality DPRs have led to delays and execution issues in highway projects. The revised framework includes incentives for firms employing key personnel from leading technical institutes such as IITs and NITs, further encouraging participation from experienced players.鈥淭he entire framework of technical score, including the marks for ratings, is aimed at getting serious and quality players to bid for DPR works,鈥 TOI quoted an NHAI official as saying.(With inputs from TOI)(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onDetailed Project ReportsMinistry of Road Transport and Highwayshighway projects qualityL1 bidding systemconsultancy feeDPR preparation costsNHAINational Highways Authority of India (NHAI)ministry of road transport
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onDetailed Project ReportsMinistry of Road Transport and Highwayshighway projects qualityL1 bidding systemconsultancy feeDPR preparation costsNHAINational Highways Authority of India (NHAI)ministry of road transport(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless